Planned revision of EU state aid guidelines endangers German coal exit plan – media report

The planned revision of EU climate, energy and environmental state aid guidelines could lead to the German government re-opening its coal phase-out decisions, writes Tagesspiegel Background. According to the current draft, the new guidelines would mean Germany will have to adapt decisions already taken on state aid rules, such as on the coal exit. In an assessment seen by Tagesspiegel, the German government is calling for this provision to be abolished. An adjustment of already approved aid does not seem adequate for reasons of legal and investment security, it says. According to the new draft guidelines, coal-fired power plants must be shut down no later than twelve months after compensation payments have been granted unless the payments are adjusted accordingly, writes Tagesspiegel.

Germany’s coal exit plan was decided after much political wrangling and difficult compensation negotiations with plant and mine operators. The government decided to compensate lignite operators with 4.35 billion euros in return for shutting down operations, while hard coal operators could participate in tenders that award low compensation demands.